12 March 2024: Xiaomi share price surge and SU7 as a reason?
Readers know that I have been a strong supporter of Xiaomi. Not only do I use the products day in day out but I have also been accumulating Xiaomi shares for a very long time by now.
My major frustration point is the lack of market appreciation of Xiaomi as a company to be invested by the investment community. Despite the good job done by Lei Jun, naysayers are trying to put down Xiaomi company. Often it is due to the fact that Xiaomi has touched too many pies of different players in a multiple of industries. Not only does Xiaomi go into Aircon, TV, shavers, smartphones, air purifiers, robot vacuum cleaners, fans, etc, it had also in 2021 commenced a program to go into the electric vehicle sector.
It's electric vehicle the SU7 looks extremely nice and even for me, who is based out of China is very interested in this car.
Recent apple withdrawal from the EV space after a 10 year period was deemed as a shocker to many people, including Lei Jun, Elon Musk, etc.
This was why many voices were out in the market trying to "influence" Su7 pricing and even the success of Xiaomi in the EV SPACE..
To be frank, this market is extremely tough and I do believe that there will be consolidation of the smaller players but for Xiaomi, it has its unique positioning that leverages on its human, home and car with it's internet of things that could present a unique value proposition in the market.
With Xiaomi finally announcing it's launch date for its SU7 electric vehicle (28 March 2024), Xiaomi share price surges over 10 percent today.
Will the surge continue? You will also recall that I look at the price point of 14.1 hkd very closely. Since it breaks above this point solidly, it rapidly moves up to 14.8 hkd now.
Will it stay at this level or fall tomorrow? No one knows for sure... But it's results on 19 march is another key date for me as a shareholder of Xiaomi.
If the results exceeds the expectations significantly and the subsequent launch is well-received, I believe Xiaomi can retest recent high of 16.98 hkd back in Nov/Dec 2023.
Nevertheless, readers should know that investment in Chinese tech stocks has been very disappointing for the last three years. I am not going to be surprised that I may be disappointed. So what will I do?
I will continue to hold Xiaomi for the long term. If Xiaomi can test the 17 hkd again with the series of announcements mentioned above and break above 17 hkd strongly, it will be a very strong signal that Xiaomi can retest 20 hkd and above.
As always, this should not be construed as any investment or trading advice.
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